Answers to questions about housing provident fund withdrawal

Question 1: Can I use my provident fund account balance for repayment if I have applied for a housing provident fund housing loan?

A: From January 1, June 1, 2007, a provident fund payer who meets the following conditions can apply for the withdrawal of the provident fund account balance of the owner and the spouse for the repayment of provident fund loans:

(1) The Provident Fund repayment is not overdue;

(2) The Provident Fund has not been suspended in the last three months;

(3) If at least one loan period has been repaid;

(4) the lending bank has an electronic data delivery management center.

Question 2: Why can't a provident fund lender withdraw it?

A: The approval from the management center must be based on the Bank's repayment record for the Provident Fund lender's withdrawal of the Provident Fund loan. Therefore, the electronic data of the Provident Fund loan must be sent to the management center before the withdrawal procedure can be completed, up to now, China Construction Bank and Bank of Communications have provided e-data delivery in line with the regulations of the management center, to apply for a provident fund loan from other banks, you must wait for the data sent by the Bank to meet the requirements before proceeding with the provident fund withdrawal procedure.

Question 3: why are there limits on the withdrawal of provident fund?

Answer: due to the nature of the housing provident fund, the main function of the Provident Fund is to help the Provident Fund owner solve the difficulty of purchasing a house by issuing a housing loan. Therefore, the withdrawal can only be limited to the amount actually used to maintain the stability of the Loan Fund scale and ensure the play of the main role of the Provident Fund.

Question 4: Why does the current payment amount not exceed the current payment limit?

A: Because the housing provident fund is used to address the need for housing funds, the amount actually used for housing loan repayment in the current period can only be used for each withdrawal. In addition, the withdrawal amount is changed from 110% of the past loan amount to the total loan interest amount. The accrued amount actually increases.

Question 5: What is the supported credit limit?

A: The supported quota refers to the maximum amount that can be withdrawn each time that meets the condition of withdrawal.

Currently there are two types of supported quotas: 1. The supported quotas for repaying Provident Fund loans are within the time range from the last withdrawal to the current withdrawal (at least half a year) the total amount of actually paid loans; 2. The amount of money that can be withdrawn to repay a commercial loan. Currently, all funds in the Provident Fund Account of the payer can be withdrawn, however, the accumulative withdrawal amount cannot exceed 110% of the total loan amount.

The balance of the account after each withdrawal must be RMB 100.

Question 6: What is the order of withdrawal?

A: When multiple people make payments for the same loan, the balance of one person's provident fund account may not reach the acceptable amount. Therefore, the withdrawal order should be confirmed by all the withdraw personnel, that is, when the number of people in the previous order has not been reached, the number of people in the next order will continue to be counted until the amount is reached. Determining the withdrawal order is also a preparation for the automatic review service to be activated for the management center in the future. After the conditions are ripe, the withdrawal person does not need to go to the management center to complete the withdrawal procedures every time, instead, the Management Center automatically reviews and transfers the funds to the bank based on the withdrawal cycle and the determined withdrawal sequence.